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Articleship help

mounika (semi qualified chartered accountant) (981 Points)

15 April 2013

Hai frnds. i m d second year of my articleship. i want to take transfer of articles. my principle conveys his consent for the same in my favour. But reasons stated by icai in termination procedure r not matching to me. wot shd i do now?? kindly suggest me one

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6 Replies

Dintakurthi Tirumala (CA FINAL) (15989 Points)
Replied 15 April 2013

On which grounds you want to take transfer.

OM SAI SRI SAI JAI JAI SAI

CA. Akhil Maangal (Head - Finance & Accouunts) (131 Points)
Replied 15 April 2013

If you are facing problem in seeking transfer from your current employer, then you can opt for Secondment. Secoondment means being registered with your current employer but working under another employer with mutual consent of both the employers. You may also contact Regional Office of ICAI to know more about Secondment.

mounika (semi qualified chartered accountant) (981 Points)
Replied 15 April 2013

thanku akhil. Whether transfer on d grounds of mutual consent of principal and article assistant is posible or not??

CA. Akhil Maangal (Head - Finance & Accouunts) (131 Points)
Replied 15 April 2013

No. If you don't fulfill the criteria laid down on transfer by the ICAI, then Transfer is almost not possible even if both Principal & Article are agreed.

Ganeshbabu K (Audit and Tax Advisory) (48559 Points)
Replied 16 April 2013

ANNOUNCEMENT

Transfer/Termination of Articleship
[Regulation 56(1)]

As informed earlier vide announcement dated 2nd July 2010, ICAI is allowing the articled assistants to seek transfer/termination of articleship only on permissible grounds and the articled assistants are advised to get the consent of the Institute before getting Form 109 signed by the Principal in their own interest.

However, it is noticed that some of the articled assistants are submitting Form 109 signed by the principal along with the application for transfer/termination of articleship. Issuance of Form 109 prior to formal approval of the Institute for transfer will not be taken into record.

It is advised that Principal and articled assistant may forward Form 109 duly signed by both of them only after obtaining the prior permission of the Institute for transfer/termination.

Ganeshbabu K (Audit and Tax Advisory) (48559 Points)
Replied 16 April 2013

a major flexibility for CA aspirants, the CA Institute, regulator of the chartered accountancy profession, has given articled clerks a choice to opt out of the existing arrangement with a principal during the first year of articleship. “Articled clerks can now transfer to another practicing chartered accountant in the first year. Earlier, there was a blanket ban and no transfer was permissible for all three years.

“Now, we are giving students an option to transfer in the first year. But for the second and third year, the restrictive clauses will continue to apply,” Mr Amarjit Chopra, ICAI President, told BusinessLine, here.

An articled clerk is a trainee attached to a practicing chartered accountant.

There is a deed of articles for the duration of three years.

Hitherto, CA students were unable to transfer to other firms even if the existing one did not suit his or her requirement.

“Many occasions, students felt they had entered a wrong firm or there was no compatibility with the principal. But now the flexibility to transfer is being provided.

“This will benefit both the student and the principal,” Mr Chopra said.

———————————————-

Transfer/Termination of Articleship

[Regulation 56(1)]

In partial modification of the announcement dated 30th June 2009 regarding transfer / termination of articles the Council in its recent meeting has decided that the transfer/termination of articleship in terms of Regulation 56(1) of the Chartered Accountants Regulations, 1988 shall be permissible on the grounds as stated below: -

I. Transfer /termination of articles is permitted without any restriction during the first year of articles.

II. During rest of the articleship period on satisfying any one or more of the conditions as stated below: -

1. Medical grounds requiring discontinuance of articles for a minimum period of three months (on production of a Medical Certificate issued by a Government Hospital).

2. Transfer of parent(s) to another city.

3. Misconduct involving moral turpitude.

4. Other justifiable circumstances / reasons: -

(ii) Grounds already permissible in the Chartered Accountants Regulations, 1988 (on submission of requisite proof of the act warranting transfer/termination of articleship): -

a. Industrial Training (Regulation 51)

b. Secondment of articles (Regulation 54)

c. Conversion from PCC to IPCC (for termination of articles only. Re-registration of articles to be allowed only after passing Group-I of IPCC)

d. Death of Principal [Regulation 57(1)(c)]

e. Ceasing of practice by the Principal [Regulation 57(1)(a)]

f. Removal of name of the Principal from the Register of Member due to any reason [Regulation 57(1)(b)]

(iii) Marriage basis (only if there is relocation to another city involving distance of 50 Kms).

(iv) Irregular payment or non payment of stipend with reference to Regulation 67.

(v) Articled assistant desires to serve balance period of training outside India.

(vi) Shifting by the Principal to another city involving distance more than 50 kms.

The articled assistants are required to get the consent of the Institute before getting Form 109 signed by the Principal in their own interest.

The request, on any one or more of the aforesaid grounds, of an articled assistant on a plain paper alongwith the recommendation/ consent of the Principal for transfer / termination of articleship accompanied by evidence/proof (self-attested by the articled assistant) to the satisfaction of the Institute be made. Request for transfer not accompanied by consent of Principal shall not be accepted.

In case of dispute between principal and articled assistant, the matter be settled amicably among the articled assistant and the principal concerned and the Institute shall not interfere in such cases.